Notes to the financial statements

for the year ended 31 March 2012

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07 Exceptional items

Consolidated 2012
£’000
2011
£’000
Onerous leases 1,100
(Credit)/charge on network build loss provision (1,100) 7,088
Restructuring costs relating to employees 4,199
Pension curtailment gain (2,950)
Charged to profit before taxation 8,337

Onerous lease provisions arise as a result of continued rationalisation of the Group’s property portfolio.

The loss on network build in the year ended 31 March 2011 related to the forecast loss arising on the build stage of a contract to build and manage a broadband network on behalf of a third party provider. The build aspect of the contract was completed during the year ended 31 March 2012 and through improved operational focus, the overall level of loss incurred was reduced, representing the credit to the provision.

Restructuring costs arose as a result of organisational changes.

The pension curtailment gain arose on the closure of the Group’s two defined benefit schemes to future accrual.

The combined tax effect of these items is £Nil (2011: £Nil) in respect of current tax and a credit of £Nil (2011: £2,334,000) in respect of deferred tax.